G7 Leaders Pledge $50 Billion Loan To Ukraine From Frozen Russian Assets

Confidence UbaniJune 14, 20241 Mins read448

G7 Leaders [Credit: AFP]

Leaders from the Group of Seven (G7) nations have announced a landmark agreement to provide Ukraine with a $50 billion loan from frozen Russian assets.

The deal, reached during a special session with Ukrainian President Volodymyr Zelenskyy, aims to bolster Ukraine’s defence and reconstruction efforts amid ongoing conflict with Russia. While expressing gratitude, Zelenskyy stressed the critical need for additional military support.

“I confirm to you that we have reached political agreement to provide additional financial support to Ukraine of approximately $50bn by the end of the year,” Italian Prime Minister Giorgia Meloni stated at the annual summit on Thursday.

The loan initiative utilises windfall profits from approximately $300 billion in Russian assets frozen in Europe. Each G7 member state will contribute, with European Commission President Ursula von der Leyen highlighting the necessity of financial safeguards in the agreement.

German Chancellor Olaf Scholz hailed the accord as historic, emphasising its defiance against Russian aggression and its strategic support for Ukraine’s defence and infrastructure needs.

Meanwhile, Russian officials have denounced the use of these frozen assets, warning of potential repercussions on European properties owned by Russia. Nevertheless, G7 leaders remain steadfast in supporting Ukraine, signalling unity against Russian tactics.

In addition to the financial commitment, U.S. President Joe Biden and Zelenskyy signed a bilateral security agreement, reinforcing U.S. support for Ukraine’s sovereignty and territorial integrity. The deal positions Ukraine closer to eventual NATO membership, although formal accession remains pending.

The summit, held amidst global turmoil, including conflicts in Gaza and economic tensions with China, underscores international efforts to stabilise regions under duress while affirming commitments to democracy and security.